Myriad Group Announces Full Year 2012 Results

Myriad Group Announces Full Year 2012 Results

ZURICH, Switzerland - 12 March 2013 - Myriad Group AG (SIX Swiss Exchange:
MYRN) today reported revenues of USD 56.3 million, and an EBITDA[1] loss of
USD 6.1 million for the full year 2012. Following restructuring post the
integration of Synchronica in April 2012, the company achieved second half
break even EBITDA1 on related revenues of USD 31.2 million.

In the second half of 2012, the company appointed a new management team and
undertook a major restructuring of the business. A number of legacy messaging
platforms were closed, and one third of the operational costs of the combined
company were eliminated. As a result, Myriad achieved breakeven EBITDA1 in the
second half of the year.

Stephen Dunford, CEO of Myriad Group AG, commented: "Following the acquisition
of Synchronica, 2012 has been a difficult year for Myriad. However, the
company has made significant progress in focusing and rationalising its
operations, improving product quality and driving innovation. We are already
seeing the first results of these actions in customer wins and service
performance within our existing tier 1 TV platform and mobile operator
customers. I believe the company is now well placed to drive significant and
profitable subscriber and revenue growth in 2013.

Revenue for the year amounted to USD 56.3 million (USD 61.0 million in FY
2011), with a post-acquisition contribution from the acquired Synchronica
business of USD 15.9 million. The underlying reduction in revenue reflected
the continued decline in the legacy 'Device Solutions Division' products as
feature phone volumes declined and a lower than planned contribution from new
social messaging services. The lower social messaging revenue resulted from
slower deployments and increased complexity of product rationalisation post
the Synchronica acquisition.

Device Solutions Division (DSD) reported revenues of USD 26.3 million (USD
49.7 million in FY 2011). Whilst legacy revenues declined, new customers and
contracts were secured in the growing 'Connected Home' market, most notably
with Comcast and Jolla which are expected to deliver more material revenues in

Mobile Services Division (MSD) reported revenues of USD 30.0 million (USD 11.3
million in FY 2011). The increased MSD revenue mix, as a proportion of total
group revenues of 53.2% (18.6% in FY 2011), boosted by Synchronica acquired
revenues, is consistent with the strategy to build a market leading social
messaging business.

Gross Margin declined 20.1% to 50.2% due to the inclusion of hosting and data
centre support costs associated with acquired Synchronica revenues together
with the decline in higher margin legacy DSD revenues. Currently there is
excess capacity in the hosting capability of the business, however as the
rationalisation process continues and subscriber numbers and associated
revenues scale, management expect hosting efficiencies to increase reflecting
the low marginal cost of cloud based services.

EBITDA1 loss amounted to USD 6.1 million, reflecting an EBITDA margin of
(10.8%), compared to USD 8.9 million profit and 14.6% margin in FY 2011.

Research & Development (R&D), gross expenses, amounted to USD 19.3 million or
34.4% of total revenues (USD 18.1 million and 29.7% of revenue in FY 2011).
The increase in R&D primarily reflects incremental costs associated with the
migration and consolidation of messaging platforms as part of the Synchronica

Sales and Marketing expenses before restructuring and non-recurring costs
declined by USD 1.5 million in 2012 to USD 9.5 million (USD 11.0 million in FY
2011) reflecting consolidation of sales roles across the Group. Sales and
marketing expenses include exceptional costs of USD 7.0 million relating to
the prudent write-down of capitalised exclusivity fees previously incurred by
the Group.

General and administrative expenses (G&A) before restructuring costs,
depreciation and bad debt expense reduced by USD 2.4 million or 18.8% to USD
10.4 million (USD 12.8 million in FY 2011), reflecting the continued focus to
reduce the number of offices and rationalise support activities.

Managing the cost base. Restructuring expenses of USD 5.1 million (included
within cost of revenue, sales and marketing and G&A expenses) related to
expenditure to reduce the cost base of the Group following the acquisition of
Synchronica. In addition, USD 1.5 million (included within other expenses) was
accrued to conclude the French social plan costs. Management estimate the
annualised savings arising from the restructuring to be approximately USD 27.0
million per annum, of which USD 9.6 million was realised in 2012.

Impairment charges (non-cash) amounting to USD 21.8 million were recorded on
goodwill and intangibles, of which USD 20.2 million related to write down of
legacy DSD browser messaging intangibles consistent with the decline in
related business revenues.

EBIT before non-recurring items, impairment and restructuring charges amounted
to a USD 26.0 million loss (USD 8.7 million loss in FY 2011). The
non-recurring items during the fiscal year 2012 included: proceeds from the
sale of non-core patents; provision for final French social plan costs;
restructuring charges; impairment charges; and costs incurred in the
acquisition of Synchronica.

Net loss as a result of the above impairments and one-time charges in 2012
amounted to USD 58.5 million (USD 15.9 million in FY 2011).

Liquidity and Capital Structure. As at 31 December, 2012, the balance of cash
and cash equivalents was USD 5.9 million (USD 25.9 million in FY 2011). In
early 2013 the company secured a financial guarantee of USD 8 million to
provide sufficient funding to execute its growth plans. Shareholders' equity
decreased to USD 34.0 million (USD 47.8 million in 2011) reflecting net losses
during the 2012 financial year with an equity ratio of 31.9% (48.1% in FY

Outlook 2013. With the relative improvement in second half 2012 EBITDA1 of USD
0.2 million profit (versus a first half loss of USD 6.3 million), helped by
the contribution of 6 months of Synchronica revenues and a reduction in
operational costs, management expect a sustained improvement in profitability
in 2013.

Consolidated income statement

                                                             2012     2011
in USD '000                                                  audited  audited
Licence revenue                                              26,168   33,636
Service revenue                                              30,120   27,385
Total revenue                                                56,288   61,021
Cost of revenues                                             (28,011) (18,135)
Gross profit before amortisation, impairment, restructuring  28,277   28,277
Gross margin % before amortisation, impairment,              50.24%   50.2%
restructuring costs
Amortisation of intangible assets                            (17,512) (16,351)
Restructuring and integration costs in cost of revenues      (481)    (542)
Impairment of intangible assets                              (21,768) -
Gross (loss) profit                                          (11,484) 25,993
Research and development, net of capitalized costs[1]        (13,445) (13,490)
Sales and marketing[2]                                       (9,518)  (11,030)
General and administrative[3]                                (13,587) (13,788)
Other (expenses) income                                      (184)    3,038
EBITDA before restructuring costs and non-recurring items    (6,057)  8,913
EBITDA margin                                                (10.8%)  14.6%
Restructuring and integration costs in operating expenses    (5,050)  (4,304)
Non-recurring items[4]                                       (7,740)  (1,483)
EBIT                                                         (60,527) (15,064)
EBIT without non-recurring items, impairment and             (25,969) (8,735)
restructuring costs
Financial result, net                                        (2,718)  483
Income tax credit (expense)                                  4,733    (1,299)
Loss for the year                                            (58,512) (15,880)

Segment information FY 2012

In USD '000                Device Solutions Mobile Services Total Myriad Group
                           Division         Division
Fiscal year                2012     2011    2012    2011    2012      2011
License revenue            14,313   30,931  11,855  2,705   26,168    33,636
Service revenue            12,030   18,752  18,090  8,633   30,120    27,385
Total revenue              26,343   49,683  29,945  11,338  56,288    61,021
Gross profit[6]            14,796   37,149  13,481  5,737   28,277    42,886
Gross margin               56.2%    74.8%   45.0%   50.6%   50.2%     70.3%
EBITDA before
restructuring costs and    591      15,283  (6,648) (6,370) (6,057)   8,913
non-recurring items
EBITDA margin              2.2%     30.8%   (22.2%) (56.2%) (10.8%)   14.61%

Balance sheet information as of 31 December

in USD '000                              31 Dec 2012   31 Dec 2011
                                         audited       audited
Current assets                           21,780        46,843
includes Cash and cash equivalents       5,864         25,926
Non-current assets                       84,864        52,589
includes Intangible assets               80,209        48,724
Total assets                             106,644       99,432
Total liabilities                        72,647        51,610
includes interest-bearing liabilities    1,278         264
Total equity                             33,997        47,822
Equity ratio                             31.9%         48.1%

Information on Myriad's Media and Analyst Briefing

Myriad will present its Fiscal Year 2012 results to members of the media,
investors and analysts today.

Media & Analyst conference - 12 March 2013 at 09:00 CET

Zurich Marriott Hotel, Neumühlequai 42, 8002 Zurich

For more information please contact

The Annual Report 2012 as well as the presentation slides for the Media &
Analyst conference are available on the company's website:


James Bodha                 Gary McManus
Chief Financial Officer     Investor Relations
Tel: +44 161 249 5400       Tel : +44 161 249 5400


About Myriad

Myriad is chosen by leading OEMs and network service providers to power rich
mobile social and web experiences - from the most basic to the smartest
connected device through a single, scalable platform.

Today, over 2.5 billion mobile users rely on Myriad software. Myriad apps
often provide users with their first taste of the Internet, and with our
proven technology embedded in every Android device we are on target to help
our partners power the next billion users.

Headquartered in Zurich, Switzerland, Myriad is listed on the SIX Swiss
Exchange (SIX Symbol: MYRN). We operate worldwide, with offices in
Switzerland, France, Germany, UK, USA, Canada, Mexico, India, UAE, China,
South Korea, Taiwan, Japan, and the Philippines.

For more information please visit our website: You can
also follow us on twitter@MyriadGroup and view our YouTube Channel -

[1] EBITDA before restructuring and non-recurring items

[2] Excluding restructuring costs of TUSD 2,485 (TUSD 1,535 in FY 2011).

[3] Excluding restructuring costs of TUSD 671 (TUSD 675 in FY 2011) and
non-recurring items of TUSD 7,015 (nil in FY 2011).

[4] Including depreciation costs of TUSD 2,400 (TUSD 1,297 in FY 2011) and
excluding restructuring costs of TUSD 1,413 (TUSD 2,094 in FY 2011).

[5] Non-recurring items for FY 2012 include proceeds from the sale of non-core
patents TUSD 4,425 (income) and Synchronica acquisition costs TUSD 3,140,
French social plan costs TUSD 1,510 and write-down of exclusivity fees TUSD
7,015 (expenses). FY 2011 includes proceeds from legal settlement with
Openwave Systems of TUSD 12,000 (income) and legal fees incurred with the
Openwave settlement TUSD 2,739, French social plan costs TUSD 10,504 and loss
on liquidation of subsidiaries TUSD 240 (expenses).

[6] Gross profit before amortisation, impairment and restructuring costs

Press release (PDF)

Provider                  Channel         Contact
Tensid Ltd., Switzerland      Provider/Channel related enquiries   
                                          +41 41 763 00 50
Press spacebar to pause and continue. Press esc to stop.